NEW DELHI : Mumbai: Mindtree Ltd’s independent directors’ committee has appointed Khaitan and Co. as the legal adviser and ICICI Securities Ltd as financial adviser for guiding the company’s directors in providing recommendations to Mindtree shareholders on the open offer to be launched by Larsen and Toubro Ltd.

Following a meeting of the independent directors on Tuesday, Mindtree’s lead independent director Apurva Purohit said: “This (independent directors’) committee will discharge the legal obligations placed on the independent directors under the prevailing regulations with respect to providing reasoned recommendations on the offer."

“The written reasoned recommendations on the open offer shall be provided within the timeline and as per the guidelines laid down by Sebi. Since the entire matter is under evaluation at this stage, no opinion has been formed by the independent directors thus far. Any reports suggesting otherwise are incorrect and baseless," Purohit added in a statement. On 26 March, the Bengaluru-based IT company’s board scrapped its plan for a share buyback that was aimed at preventing a hostile takeover by L&T.

L&T had on 18 March announced that it would launch an open offer to buy additional 31% of Mindtree after agreeing to buy a 20.32% stake from V.G. Siddhartha and his firms, the company’s largest shareholder group.

L&T will launch its open offer on 14 May.

L&T also said it would buy a 15% stake in Mindtree from the open market. L&T aims to buy a total of 66.32% in Mindtree, which will cost it around 10,700 crore at 980 per share.

For now, L&T wants Mindtree to remain listed and function independently. But, on 19 March, in an investor presentation, L&T mentioned that it might consider a possible merger of Mindtree with L&T Infotech Ltd and L&T Technology Services, once the combined revenues from the three entities cross the $5 billion threshold.

L&T said it will file its draft letter of offer with the Securities and Exchange Board of India (Sebi) for the Mindtree takeover on 2 April, while Mindtree’s IDC could send its recommendations to the shareholders by 10 May. L&T has the option to raise the open offer price or the offer size till 13 May.

On Tuesday, L&T shares fell 0.19% to 1409.70 apiece while Mindtree's gained 0.08% to 945.25 apiece on the BSE. The benchmark Sensex rose 0.48% to end the day at a record high of 39,056.65 points.

This story has been published from a wire agency feed without modifications to the text.

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